Solidarity Trade Union gave a guarded welcome to the news that there will be no immediate compulsory redundancies for Vauxhall’s 30,000 workers based in throughout the UK.   However, General Secretary, Patrick Harrington, noted that the car giant “may still be “facing death by a thousand cuts.”

His comments came after it looked certain that the sale of General Motors' European division - including Vauxhall in the UK - seemed to be drawing to a conclusion.  If all goes according to plan, Vauxhall's new owner will be the Canadian car parts maker Magna International.

When GM Europe was put up for sale in May, it was feared that 1,200 jobs would go.  However, it now looks like around 600 jobs could be lost through voluntary redundancy.

The main gain for British workers is that Magna International have agreed to keep both the Vauxhall plants at and Ellesmere Port and Luton  open.  These are Vauxhall’s two most productive plants and employ around 5,000  people.

Mr. Harrington said:

“Solidarity welcomes the news that there will be no mass lay offs.  However, we fear that Vauxhall may go the same way as many of our services in the public sector.  They are facing death by a thousand cuts.

Six months ago, Vauxhall's employees were hit by a 5% pay cut and a 10% cut in working hours.  Magna have already announced a two year pay freeze.  At the moment it may not be in Magna's interests to slash jobs.  However, who know's what could happen in the future?"

Comments

Shoreditch

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You are right to wonder what will be the future for Vauxhall. From what I understand, the sale to Magna International was agreed on 10th September. By early October they announced this two year pay freeze!

I’m wondering what sort of deals have been made behind closed doors? A trans-national corporation like Magna is just out to make profits. Capitalist concerns have no loyalty to nations, regions or peoples. Employees are just regarded as numbers.

So what were Magna offered?

When the firm was put up for sale in May, it looked like over a 1000 jobs would go. However, this has been whittled down to around 600 – all through voluntary redundancy.

Apparently, Magna are to receive up to £450m in financial support from the government. Presumably the ordinary British tax payer will have to stump that lot up.

I’ve also heard that Magna have promised to keep the Vauxhall factory at Ellesmere Port open until 2013. However, they would not guarantee any further production after that date!

Sadly, it looks like your prediction that Vauxhall could be “facing death by a thousand cuts” may be spot on.

Saturday 24 October 2009, 19:09

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